Concerning the new Entrants: The Threat of the Rivalry
Among one of the most important factors that have to be taken into account when introducing a new product into the market is taking account of the new entrants that are going to capture the market in the next few years. Even though at present, the situation concerning the possible rivals is medium, it can increase in a relatively short amount of time, which is a reason to be prepared for facing rough competition. However, emphasizing the organic nature of the product, one can promote the new cookies relatively easy and efficiently. According to what Baourias says, “Organic private labels can facilitate the linkage between producers and retailers and improve the efficiency of the supply chain” (166). Therefore, emphasizing the specifics of the organic cookies, one can possibly overcome the competition and beat the rivals.
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Substitute Products: Something to Ponder over
It is also worth keeping in mind, though, that the new invention also has a plenty of competitors that have already settled in the niche of organic sweets production. Hence, one has to take account of the most influential companies in the sphere of organic food in general and the organic sweets, especially organic cookies, in particular. However, taking a closer look at the existing organic food companies, one can mark that these are quite few, yet greatly influential.
For instance, one of the most recent and the most successful companies, Beautiful Sweets Organic Bakery (CookieGiftReview), claims to offer the cookies that are practically the reinvention of the world of bakery, because “The organic baked goods are delicious, all-natural sugar cookies which are individually hand-baked and artistically decorated, although they offer brownies too. They are working on a full-product line of gluten-free, organic cookies” (CookieGiftReview). Therefore, the current situation in the organic food market presupposes a considerable amount of rivals, which both complicates the matter and at the same time entices for further competition.
Position Map: The New Strategy
To demonstrate the opportunities that the given venture is going to have in the organic food markets, one has to introduce a graph that depicts the ratio of the price, the number of customers and the level of rivalry the given venture is going to have in certain locations. Thus, one can see distinctly the drawbacks and the chances Cookie Five is going to have in each sphere. The graph below depicts the current ratio of price and profit in the world of organic food retail.
As one can see from the graph above, the retail of organic cookies is the most profitable in cafes and shops, where the rivalry is not as huge as in big corporations, yet where one can attract more clientele than in holistic stores, where only few people keeping certain lifestyle go. Hence, it is reasonable to suggest that the future retail of organic cookies should mostly concern the sphere of cafes and supermarkets.
Buyers and Distribution Channels
Speaking of the Retailers: Distributing the Organic Food
According to the results of the recent researches conducted in the sphere of organic food retailing, a number of companies deal with the above-mentioned issue and offer their services to the producers of the organic food and, to be particular, organic sweets. However, in the given sphere, farmers create the atmosphere of tough competition, since their products target the same audience and offer the same profit. Still, it is essential to mark that in the winter, farmers pose practically no danger for the retailers of organic cookies, as Karr and Ornish explain. Nevertheless, the latter stress that there are big companies that take over the organic cookies market in the rest of time: “Warehouse clubs like Costco and Sam’s Club now carry a lot of organic produce, and the prices are very good. Okay, these stores are big corporate monsters, but when the farmers’ market is closed for the winter, they’ll do” (159).
Since the larger companies can consider Cookie Five a product not worth their scale and reputation, it could be a good idea to draw their attention to the fact that Cookie Five is more expensive than their goods and provide the documentation concerning the ingredients of Cookie Five.
The Grocery Stores in the Neighborhood
When mentioning the possible places of retail, one has to keep an eye on the local grocery stores as well, for the latter are the main rivals of the Cookie Five. It could be a good idea to explain to the owners of the local grocery stores that offering the clientele the new cookies for higher price, grocery stores can win and obtain considerable profit as soon as the clients realize that Cookie Five offers them a healthier lifestyle. Hence, the introduction of Cookie Five to the local groceries is not supposed to pose a considerable problem and is bound to have the most positive effect on the promotion of the new cookies.
The venture is supposed to have positive results, since “conventional grocery retailers are attracted by the high market growth rates in the organic food industry,” (19) as Wright and McCrea claim. Therefore, retailing Cookie Five in the local groceries can prove an efficient means to promote the new product. It is also worth mentioning that a number of local buyers will be attracted. However, among the drawbacks standing in the way of enhancing the Cookie Five purchase can be the lack of space in the stores. It could be a good idea to offer the stores to deliver cookies regularly in small packages.
Cafes: The Places Filled with Cookies
Another good idea for Cookie Five retailing can be offering the organic cookies to the local cafes. Since most people come to cafes to have some refreshments, and their visit presupposes not a three-course dinner, but a short snack, organic cookies are supposed to have success in local cafes. Hence, offering Cookie Five to the local cafes can be another possible way out. Moreover, cafes can produce their own Cookie Five.
Holistic Stores: Comprising All Ideas into an Entity
The last, but not the least, the idea concerning the retail of Cookie Five in holistic stores can also prove rather efficient. Since Cookie Five is ideal of people who want to maintain a healthy diet, holistic stores are one of the best places to sell these goods. As Hunt emphasized, modern people tend to stick to the diets that involve organic ingredients (145), which means that the clientele will be eager to try the new organic cookies.
Baourakis, George. Marketing Trends for Organic Food in the 21st Century. Singapore, SG: World Organic, 2004. Print.
“Beautiful Sweets Organic Bakery”. Cookie Gift Review. CookieGiftReview, n.d. Web.
Hunt, Anne. Holistic Lifestyle: A Layman’s Guide to Eating and Living Your Way to Better Health and Happiness. Neche, ND: Friesen Press. Web.
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Karr, Kris, and Dean Ornish. Crazy Sexy Diet: Eat Your Veggies, Ignite Your Spark, and Live Like You Mean It! Augusta, GA: Globe Pequot. Web.
Wright, Simon, and Diane McCrea. The Handbook of Organic and Fair Trade Food Marketing. New York, NY: John Wiley and Sons, 2007. Print.